When working from home and attending school virtually became part of everyday life during the COVID-19 pandemic, it taught us how vital residential broadband is.
A recent report from OpenVault found that broadband usage increased nearly 50% compared to the previous year in the first quarter of the pandemic, and that usage has remained high to this day. Those with a stable internet connection were able to keep up with school, work, and various tasks. However, because ISPs have continued to poorly serve certain customers for years, many families have been left behind. In fact, more than 42 million Americans lack access to broadband, according to BroadbandNow.com.
The Digital Divide refers to the gap between those who have access to high-speed internet and those who do not due to various demographic factors. Even many with internet access struggle with unreliable internet, low broadband speeds, and overall poor performance. Options like fiber, which are known to be incredibly reliable, are difficult to implement in communities. Older options like DSL and satellite lack the reliability and speeds to keep up with today’s typical broadband usage. Thus, for decades, many in this country have been without a stable internet connection, and competition everywhere has remained limited.
In 2021, Congress created the Affordable Connectivity Program, a long-term $14 billion program to combat the Digital Divide. This program offers a discount for internet service to eligible households. However, many communities, especially those in rural America, still face infrastructure hurdles. In a recent speech at the White House, President Joe Biden stated that more than 30 million Americans live in rural areas that still lack access to high-speed internet.
The good news is that 5G is helping to bring new hope to the high-speed residential internet industry. 5G wireless networks have massive capacity, more than 4G LTE networks ever had. According to industry experts, this means that 5G can deliver enough capacity and fast speeds to provide residential internet service directly to millions of homes in the United States, without the expensive buildouts or complicated installations common with major internet companies.
With 5G comes Fixed Wireless Access (FWA), a new service that will help overcome the Digital Divide. FWA is an economical way to deliver high-speed internet to areas with limited fixed broadband (wired) infrastructure. FWA works like any other residential internet service, but instead of connecting via cable, it does so through a wireless network using a router. It leverages the extra capacity of wireless networks, making it easy to deliver a reliable high-speed internet experience to homes in traditionally underserved areas. FWA doesn’t require drilling holes, and setup is simple. Just plug in a dedicated router, place it in an area with great signal, and you’re connected.
Are you wondering if 5G FWA is here to stay? ABI Research predicts that by 2026, the FWA market will exceed 180 million subscriptions and generate $70 billion in revenue. The 5G FWA market will then represent 40% of the total FWA market.
Two companies are leading the FWA market. One of them, T-Mobile, launched 5G Home Internet in 2021 and already has over 1.5 million customers.
At a time when connectivity has never been more important, 5G FWA will help millions access reliable and affordable residential internet. Overcoming the Digital Divide is not only crucial for those without access, but it’s good for the entire country. With 5G, there is a powerful opportunity to transform the high-speed internet industry for the better.
Source: Statepoint